Sporton International Inc. · TPEX:6146
Sporton International — Q1 2024 Earnings Presentation
39 slides from Sporton International's earnings presentation, 2024
Slide 1: SPORTON INTERNATIONAL INC.
SPORTON INTERNATIONAL INC. Finance Director - Grace Pan Special Assistant of the G.M. Office - David Chou Stock code 6146 TW
Slide 2: Outline
Outline 1 Industry Trends & Growth Momentum 2 Business Operation & Core Strengths 3 2024 Q1 Financial Analysis Report 4 Business Opportunities from Developing Technology 2
Slide 3: Industry Trends & Potential Growth Momentum
1 Industry Trends & Potential Growth Momentum 3
Slide 4: Industry Trends & Growth Momentum
Industry Trends & Growth Momentum The Dimensity 9300, manufactured using TSMC’s 4nm process, has been adopted by Chinese companies such as Vivo and Xiaomi. Tianji 9300+ by TSMC 4nm process, used by Vivo, Xiaomi. 8S Gen 3 runs large language models (Llama 2, Gemini Nano) with up to 10 billion par
Slide 5: Large Language Model, LLM
Large Language Model, LLM Model Company Language Model Release Date Name Large Language OpenAI GPT-4 3/14/2023 Model(LLM) Large Language Meta Llama 2 7/19/2023 Model(LLM) Large Language Google Gemini 12/6/2023 Model(LLM) Small Language Microsoft Phi-2 12/13/2023 Model(SLM) ＊Microsoft has unveiled Ph
Slide 6: Smart Phone vs. AI Phone
Smart Phone vs. AI Phone Smart Phone AI Phone Platform LLM Apple iOS & Google Android OPEN AI GPT4 (Parameters too extensive.) Meta Llama 2 Google Gemini Nano Microsoft Phi-2 APP AI Application Apple App Store & Google Play OPEN AI GPT Store --- ??? --- ??? The main applications and industries it br
Slide 7: AI sever computing vs. Edge AI computing
AI sever computing vs. Edge AI computing Current mode of operation for smartphones involves AI generation. H100 GPU GPT 3/4/5 have 175 billion to over 100 trillion parameters. AI sever computing AICG Applications: Various Generations Mobile chip + Built-in 7 to 10 billion parameters. LLM or SLM Meta
Slide 8: 2/3/4/5G vs. Killer Apps
2/3/4/5G vs. Killer Apps 2G 3G 4G LTE 5G AIOT 3.5G HSPA+ LTE Advanced 5G Advanced Hardware Application Voice call Voice call Voice call Voice call Data transmission: Data transmission: Data transmission: Browsing the internet, sending and receiving Browsing the internet, Browsing the internet, sendi
Slide 9: AIGC built in end product testing demand market trends
AIGC built in end product testing demand market trends 1. Chip spec continue to improve. Mobile chip • 1 billion parameters • 7 billion parameters • 13 billion parameters • 33 billion parameters • … • Chat GPT-3 175 billion parameters • … • … • Chat GPT-4 100 trillion Mobile chip parameters H100 GPU
Slide 10: 6GHz AFC（6SD）Technology
6GHz AFC（6SD）Technology Automatic Frequency Coordination (AFC) is a technology used to efficiently manage and allocate wireless spectrum, prevent interference, and ensure effective spectrum utilization. When devices operate in the U-NII-5 and U-NII-7 frequency bands, AFC ensures they do not interfer
Slide 11: 5G Advance & 6G
5G Advance & 6G The first of 5G Advanced standards is expected to complete in 2024. 6G is expected to be standardized starting from Release 21. The first of 6G standards may finalize in 2028, followed by continuous improvement. 11 Source: https://www.ericsson.com/zh-tw/reports-and-papers/white
Slide 12: Market statistics on 5G equipment and terminal products
Market statistics on 5G equipment and terminal products Total Commercially available 2,358, 100% 1, 964, 83.3% Industrial or Phones 1255 53.0% enterprise Fixed wireless access CPE 308 13.0% routers, gateways, Modules 243 10.3% or modems 7.6% Industrial or enterprise routers, 179 7.6% gateways, or mo
Slide 13: 5G SA
5G SA Total Commercially available 1,764, 100% 1, 535, 87% Phone 1084 61% Fixed wireless access (CPE) 229 13% Modules 198 11% Industrial or enterprise routers, Module gateways, or modems 105 6% 11% Phone Battery-operated hot spots 30 2% 61% 手機 Others* 118 7% CPE模組 52.2% 11.6% 13% With the continuous
Slide 14: TLVR coupled inductors used in high-power AI servers
TLVR coupled inductors used in high-power AI servers According to industry analysis, due to the significant increase in power consumption, AI servers have higher inductance specifications, and the average unit price is about 5 times higher than that of ordinary servers. Due to the significant increa
Slide 15: Heavy Current testing－Ultra-large 10-meter anechoic chamber
Heavy Current testing－ Ultra-large 10-meter anechoic chamber EMC Testing （Electromagnetic Compatibility） Radiation measurement Conduction measurement Tolerability measurement 15
Slide 16: Business Operation & Core Strengths
2 Business Operation & Core Strengths 17
Slide 17: Business Operation
Business Operation 90% Testing and Certification Testing and Certification 1 Mandatory Regulatory Compliance Following the guidelines and rules set by government organizations to legally launch a product. EMC (Electro-Magnetic Compatibility) Safety Inspection of battery, smartphone, communications,
Slide 18: Business Operation
Business Operation Testing and Certification Testing and 91% Certification 90% 2 Conformance and Performance Testing and Testing Technical specifications of communication Certification protocols required by phone carriers. Comprehensive testing and certification for 2G, 3G, 4G, and 5G devices Testin
Slide 19: Business Capacity
Business Capacity With 113 major testing facilities, Sporton has the highest testing capacity in the world. 966 semi-anechoic chamber (US standard) Fully anechoic chamber (European standard) SAR testing (Specific Absorption Rate) OTA Antenna performance testing Your Text Here Your Text Here Your Tex
Slide 20: Core Strengths—Deliver Excellent Service
Core Strengths— Deliver Excellent Service Service location in California Germany testing site 1.International Certification Co.(ICC): ICC is a wholly owned subsidiary. Founded in 2013, it has been profitable since 2014. 2. Sporton ShenZhen was founded in 2017. The lab 20 specializes in IoT testing.
Slide 21: 5G NR Case Counts Published by FCC and NCC
5G NR Case Counts Published by FCC 5G NR Case Counts Published by NCC 2024 Q1 FCC 5G NR SPORTON + ICC 19 25.7% SGS 7 9.46% CAICT 7 9.46% UL 6 8.11% SPORTON CHINA CERTIFICATION ICT CO., LTD 5 6.76% + ICC Eurofins SPORTON HCT 5 6.76% Bureau Veritas 3 4.05% SGS Bay Area Compliance Laboratories DEKRA 3
Slide 22: High-end Wi-Fi 6E/7 Devices Case Counts Published by FCC
High-end Wi-Fi 6E/7 Devices Case Counts Published by FCC FCC Filling Projects (2024 Q1) Master FCC Filling Projects(2024 Q1) Master Device Client Device Sporton+ICC 21 42% Sporton+ICC 15 35% UL 5 12% MRT 13 26% Sporton + MRT 4 9% Bureau Veritas 8 16% Bureau Veritas ICC Bureau Veritas 3 7% SGS 2 4% I
Slide 23: Regulatory OTA Field Trial
Regulatory OTA RegulatoryAuthorities- Antenna Performance Testing CE/FCC/NCC o CTIA (Cellular Telecommunications and Internet Association) o Telecommunication Network Comprehensive Operators in Europe/North 5G NR Testing America Laboratories Field Trial FTA Worldwide Telecommunication Conformance Te
Slide 24: Actively Participating in International Standard-setting Conferences
Actively Participating in International Standard- setting Conferences – Core Strengths Our company's Mr. Graham Harvey currently serves as the Chair of PTCRB Plenary Working Group. Institute of Electrical Cellular Third Generation Partnership Global Certification and Electronics Telecommunications a
Slide 25: Actively Participating in International Standard-setting Conferences
Actively Participating in International Standard- setting Conferences – Core Strengths Certification Body National Certification Body International Laboratory Federal American Association for Accreditation Cooperation Communications Laboratory Mutual Recognition Arrangement Commission (FCC) Accredit
Slide 26: Competitive Advantages
Providing 5G and telecommunication product 1 testing and certification services with the highest testing capacity in the world Designated testing laboratories by 2 5G and telecommunication chip manufacturers Competitive Designated testing laboratories by Advantages 3 top smartphone and telecommunica
Slide 27: Major Clients
Major Clients Qualcomm T=5LA amazon OO Meta Google BE Microsoft AA) @ Verifone \h. ZEBRA Honeywell nest ee Otomtom OPTION intel. LET QD il eit, rockchia vy s!sn59 sonim Cinterion doro VERTU Gntinental} SONY MITSUMI FUITSU TOL ETonepLus cooload WA Huawei CPPS VIVO @ Lenovo realme (gj GIONEE @.... ITE
Slide 28: Environmental Social Governance
o Compared with 2021, in 2022, the electricity consumption Environmental reduced 0.68%; paper consumption reduced 42%, reducing 7.92t of CO2e. o Perspective Plan: Installing a solar electric system at Hwaya; Building rainwater collection or air-conditioning condensate recovery systems; replacing old
Slide 29: SPORTON: A Third-Party Testing Laboratory with Integrity
SPORTON: A Third-Party Testing Laboratory with Integrity We endeavor to deliver timely and accurate testing results for all of our clients. 29
Slide 30: For Those WITHOUT Integrity and Quality…
For Those WITHOUT Integrity and Quality… X Fraudulent or non-compliant testing reports will increase the risk of being issued invalid certifications. X Disqualified products will impact clients’ product sales and consumer health. Recently, the Federal Communications Commission (FCC, US), National Co
Slide 31: 2024 Q1 Financial Analysis Report
3 2024 Q1 Financial Analysis Report
Slide 32: Consolidated Income Statement (2024 Q1)
Consolidated Income Statement(2024 Q1) 2024 / 1Q 2023 / 1Q 2023 2022 YoY YoY Amount ％ Amount ％ Amount ％ Amount ％ Total 1,143,752 100 1,290,312 100 -11.36% 4,832,474 100 5,015,224 100 -3.64% Revenue Gross 553,994 48.44% 705,476 54.67% -21.47% 2,574,615 53.28% 2,758,049 54.99% -6.65% Profit Operation
Slide 33: Quarterly Revenue and Profit
Quarterly Revenue and Profit 14 70.00% 12 60.00% 10 50.00% 8 40.00% 6 30.00% 4 20.00% 2 10.00% 0 0.00% 2021/1Q 2021/2Q 2021/3Q 2021/4Q 2022/1Q 2022/2Q 2022/3Q 2022/4Q 2023/1Q 2023/2Q 2023/3Q 2023/4Q 2024/1Q Total Revenue 10.09 10.4 11.64 11.08 12.35 12.79 13.16 11.86 12.9 11.91 11.96 11.56 11.44 Net
Slide 34: Revenue Breakdown
Revenue Breakdown Revenue Breakdown by region/department 4.39% 2.44% 2.59% 3.23% 1.62% 8.20% 9.94% 8.65% 8.87% 8.22% 9.99% 5.10% 9.31% 10.93% 4.59% 4.68% 3.21% 3.11% 3.19% 2.97% 4.35% 13.93% 9.64% 23.50% 18.46% 22.66% 16.87% 20.72% 26.76% 71.43% 75.78% 63.20% 67.01% 62.41% 62.71% 68.37% 55.19% 2017
Slide 35: Return on Investment Analysis
Return on Investment Analysis 3G 4G/LTE 5G 55.00% 53.28% 48.59% 48.92% 50.03% 48.44% 47.01% 47.03% 45.37% 45.95% 44.80% 44.13% 43.01% 37.00% 36.68% 31.46% 33.23% 32.72% 30.57% 28.89% 28.36% 28.42% 28.45% 27.86% 25.58% 23.86% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024/1Q Total R
Slide 36: EPS and Dividends during the last 12 years
EPS and Dividends during the last 12 years Three consecutive years of earning more than one unit of capital. In 2023, the after-tax EPS was 14.32 NTD. It is proposed to distribute a cash dividend of 10.5 NTD per share in 2023. 15.09 14.32 11.01 8.50 7.65 7.53 7.71 7.58 8.03 0.5 0.0 7.27 4.83 5.25 0.
Slide 37: Business Opportunities from Developing Technology
4 Business Opportunities from Developing Technology
Slide 38: Next-generation mobile communication technology and application scenarios
Next-generation mobile communication technology and application scenarios 2024~2028 Entering the 5G Advanced. Wi-Fi 7 products are quickly introduced into various terminal applications, and will become the mainstream specification in 2024. AI applications will quickly penetrate into various wireless
Slide 39: THANK YOU
THANK YOU Should you have any questions, please contact David Chou via email (davidchou@sporton.com.tw) Presentations over the years
Sporton International — Q1 2024 Earnings Presentation on 6ix